Guest Commentary – Walking the Peaceful Path of Ludwig von Mises

As we reach the Thursday night guest commentary night, I have the opportunity to offer to the readers of SUFA a contributor that has not submitted articles in the past. I have several submissions at this point from this particular author, who is also a regular contributor on Lew Rockwell’s site. Ron also created his own place on the net, which I will provide a link to below. Ronald is an internationally known financial & marketing consultant & author of 3 books and over a hundred articles, a leading speaker at financial conferences in the US and abroad and editor of several internet based news sites. Although from North Carolina, Ron has lived and worked in Geneva, Switzerland and traveled all over Europe and North America. He is a contributing editor to the Swiss Mountain Vision Newsletter and Swiss Confidential published by Appenzeller Business Press. I am quite honored to have Ron sending articles over to us at SUFA for the purpose of discussion and analysis. I cannot guarantee that Ron will have the time to jump in and participate in the discussions, as he is quite a busy man. He is aware of my posting the article and I am sure he will be jumping in to see what the fine folks at SUFA think.

As mentioned above, Ron has also created a site called The Swiss Confederation Institute. You can reach the site by following this link: The Swiss Confederation Institute The mission of the site is summed up as (in their own words):

The mission of the Swiss Confederation Institute is to educate the American public and the world about the success story of Switzerland’s unique model of direct democracy and decentralized limited confederation political system in contrast to the perceived failure of American style representative democracy to limit government growth and defend liberty. Imagine a nation where the voters not only have the right of referendum to overturn central government dictates as well as parliamentary or congressional excess but where the citizens can actually initiate and create legislation, laws, regulations and policy—all through their initiative process in Switzerland.

Our goal is help the public learn why the Swiss political model that preserves personal liberty, advocates local decentralized government services and guarantees citizen control over government should be emulated and copied in the U.S. and around the world. It is important to remember than America’s first government was the Articles of Confederation. Even our neighbor to the north has been successful as a confederation as their devolution of federal power voluntarily kept Quebec in Canada.

You can also view Ron’s impressive CV Here: http://www.ronaldholland.com/curriculumvitae.htm

and you can visit the Apenzeller site here: http://www.arbp.ch/

Additionally, I must first give credit to Lew Rockwell’s site as they are where this particular article was first published and they hold the rights to it: http://www.lewrockwell.com/holland/holland20.1.html

Now that you have an idea who Ron Holland is, let’s talk about his article. This particular article was in response to a boatload of emails regarding a previous article. Ron was being asked what should we do? I know that I speak for a lot of people when I say that there are tons of folks who are asking that very question. Despite the pure insanity of the sentiments that have gripped Washington and consequently have spread through the land in the form of the progressive movement, the reality seems to be that we are heading down a path of both fiscal suicide and massive trimming of the liberty we were supposedly creating a government to protect.

We have already seen that some of the weaker minds in society have resorted to violence because of the perceived threat and the feelings of hopelessness around our Republic. Obviously, I have long preached that violence is not the answer. While I favor a rebellion, it is a rebellion of public opinion, not a physical confrontation with a group that recognizes only its own right to use violence. Ron offers up some advice in a similar vein, showing us the path of Mises. I know that many of the readers here are well aware of who Ludwig von Mises is. I have been familiar with him only during the last couple of years, and really starting honestly trying to understand his views as a result of BF’s urging when I asked for advice. Given the continued failure of Keynes economic principles, Mises had a vastly different view of economics, and one that has proven to be far more viable and successful.

Walking the Peaceful Path of Ludwig von Mises by Ron Holland

Ludwig Von Mises

Last week, Lew Rockwell posted my essay “In the Summer of 2009” with the title: Smart, Rich People Are Leaving the US. As usual, I received a number of responses both positive and negative.

Many of the negative, mostly “super patriot neocon types” wrote in slamming Steve Wynn and other Americans who decide to leave America as unpatriotic and cowardly while they always proudly announce in a macho tone, “I’m staying to fight to the end” or “I will give up my gun when they pry my cold, dead fingers from around it.” While this talk of Alamo-like resistance might look good on a bumper sticker or a blog post, it is not very practical.

In our situation, violence will only make the situation worse and will be a clear indication that the forces of real freedom have lost. In a worst-case scenario, a more likely outcome is an American public reduced to destitute paupers as we survive like latter-day serfs working for the government or on handouts.

What Would Mises Do?

“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final total catastrophe of the currency involved.” ~ Ludwig von Mises

I believe we are facing a future collapse of our debt and dollar as Mises outlines in the above quote. We should forgo the macho, “Apocalypse Now smelling napalm in the morning rhetoric” and ask ourselves, “what did Mises do in a similar situation?”

In 1934, Mises left Austria for Switzerland rightly fearing a Nazi Anschluss or annexation with Germany which most of the population eventually supported in 1938. Later in 1940, he left Switzerland for the US fearing a successful German invasion of Switzerland. What could a little Jewish man have done fighting the German Wehrmacht or the Waffen-SS? Absolutely nothing!

“Not mythical material forces but reason and ideas determine the course of human affairs. What is needed to stop the trend towards socialism and despotism is common sense and moral courage.” ~ Ludwig von Mises

Mises chose a smarter course of action which we should follow today to win the battle for freedom and liberty over those who would enslave our children in poverty for generations after they have finished looting our liberties and wealth today. His solution did not involve violence or material forces but rather reason, education and ideas. The ideas of Mises and the Austrian School of Economics might not even exist today were it not for Mises escaping to America with his philosophy and dedication. He fought smart with common sense and courage and this is what we all need to do today.

My Personal Recommendations:

Political Options – Worthy long-term political options are state nullification, the tenth amendment and in the most extreme case after other remedies have been exhausted, democratic, constitutional secession. Also consider supporting political efforts and individual candidates who seek to restore the original Articles of Confederation or a return to our original republic and the Constitution protected and defended by state sovereignty and a real Bill of Rights. But, do not depend on the entrenched, two-party monopoly to save your freedoms or defend your wealth. If you don’t do it yourself, no one will.

Educational Options – Support the few think tanks and foundations in the U.S. and abroad that don’t compromise and actively seek to restore real political and personal freedom. Question foundations predominately funded by large corporations or contributions from mainstream organizations as over time, many 501(c)3 foundations tend to move away from their stated goals as money pressure mounts and the mission is compromised by the reality of budgetary necessities.

Make your contributions over a long period of time because some organizations, boards and presidents change as does the philosophy and direction. You can retain some impact on future programs by making your contributions on a regular but long-term basis. Also be sure to remember your favored foundations in your will and trusts.

At the present time my preferred organization for tax-deductible contributions is the Mises Institute but a warning is in order. There will likely come a time when 501(c)3 organizations offering tax deductible contributions may become so controlled by Washington that they will be rendered ineffective in the fight for personal liberty. My last freedom contribution was to LewRockwell.com but without a deduction because they have more freedom to engage in educational and political actions and use my contributions where it is best needed.

Secure Wealth Options – Many readers have asked about my personal strategies and recommendations during these perilous financial times. My overriding concern is to prepare a defense for our wealth and remaining liberties before a run on the dollar and Washington revenue needs tramples everything that hasn’t been carefully shielded. It is important to secure your wealth not so much for yourself but for future American generations. We must use our excess wealth to fund educational, philosophical and political efforts to restore the original patriot dream of America’s founding fathers.

Get most of your wealth outside the dollar and the United States while of course following all reporting requirements and tax requirements. When possible and if your level of net worth permits also take your business, vocation, family and yourself. Then live relatively frugally rather than wasting your wealth on high living and excess consumption. Be able to use your wealth to restore what was once the greatest nation and jurisdiction of freedom and liberty in the entire world with the following actions:

3. Buy More Gold & Silver – Add to your gold and silver holdings. If they’re substantial, store most of the metal in secure programs outside the U.S. This will protect you from the growing risk of gold confiscation. Consider Global Gold in Switzerland and/or The Perth Mint in Australia.

4. Increase Your Participation in Mining Shares – Move more money into mining shares during any short-term pullbacks in the price of gold.

5. Consider A Safe-Haven Retreat & Vacation Property Outside the U.S. – Choose a location you’ve visited before and where you would like to live full or part-time. But even if it’s only for investment purposes, don’t buy real estate in a country you’re not yet very familiar with.

6. Reduce Your American Real Estate Holdings – The tax benefits of home ownership will soon vanish for most Americans because the government is going to be desperate for revenue.

7. Get A Second Passport – If possible, get a second passport for use when traveling or living overseas. When the dollar and U.S. Treasury debt bubble collapses, the world will blame Washington and Wall Street for plunging it into the Greatest Depression. The last thing you will want to show when visiting or living offshore is an American passport.

8. Move Outside the USA – If practical, move your business, job and person offshore and outside of the U.S. One way or another, you’ll pay taxes wherever you go. Why not pay them to a government that gives you stability in return, instead of to a government that repays you with incompetence and tyranny.

9. Dodge the Coming Obama Retirement Trap – If you have a substantial amount in an IRA or other tax-advantaged retirement plan and are approaching retirement, start taking distributions now. For balances over $200,000, consider shutting down the plan. A cash-strapped Washington could eventually force your IRA to put everything into Treasury bonds or even impose a special tax on “excess” benefits.

10. Take Social Security As Soon as You are Eligible – Collect what you can, while you can, before you get shut out by a “means test” and lose your promised benefits.

I urge each of you to battle the enemies of freedom with courage and intelligence using your wealth and the internet to promote our vision for a restored America. Follow the peaceful but wise path chosen by Ludwig von Mises and we will achieve victory in our lifetime.

Comments

I have read several articles referring to the collapse of the credit expansion and dollar.Is there no other remedy other than allowing this to happen in order to correct our monetary system in America?

So, as productivity increases and savings increases, the cost of credit decreases.

This is important – I will reference this later

Cheap credit is a price mechanism by which entrepreneurs judge the market.

Cheap credit says:
“The people are highly productive and have lots of free cash (savings). They will want to convert that productivity and free cash into prosperity – so its time I create the goods and services they want to buy”

If the creditor acts the same way as if the air-money was “real” essentially the same thing happens as in (1) – credit costs go up

But there is no natural brake on credit creation -if it is created out of thin air, it still can be created out of thin at will

The tendency of politics is to avoid pain – and the pain of loss of savings is a recession. But if politics can avoid recession by increasing credit when credit is expensive – it will be done.

Thus we have Mises nightmare a continuation of cheap credit – replacing the requirement of increase of productivity and savings.

Mises saw this as the reason economies have boom/busts – the entrepreneur using credit costs as his method of determining his making products

He is lied to – the cost of credit is artificial and NOT due to increase in productivity and savings and thus the People do not have their own money to convert to prosperity, but only BORROWED money.

But he creates new goods and services only to find that the People cannot buy them

Thus, businesses fail – people working for those businesses are fired – and another recession – leading to another round of cheap credit – a boom – leading to even a deeper bust and so on.

Eventually, the cheap credit must be cleared, the economy must recess and productivity and savings must replace air-credit.

The longer this is delayed, the larger the required recession and the worse the pain – even higher unemployment and business losses.

There will come a time that no amount of cheap credit will stop the recession – a major crack-up. The problem here – outside of economics – is that the pain will likely be so harsh as to cause systemic political upheaval.

Thanks for the article USW – hadn’t heard of Ron previously and have not read von Mises ever (yet).

@Educational Options – I think we are long past the point of compromise of “think tanks” – I say ‘trust but verify’ and ‘always hold a skeptical eye’.

@Get a Second Passport – not sure I understand this?

I will add that while I find this article incredibly interesting (I have about 25 other Firefox tabs open of ‘stuff to read later’) – it reads to me more as a “cover your own ass” rather than something prescriptive for repairing a flawed Nation. I cannot repair my lanndscpaing if I’m in the basement hanging drywall. The skeptic in me wonders how many of the ‘secure wealth options’ Ron sells or profits from.

Not sure I’m tracking him either. I think he may be saying live where you want to, but do not register. Go off grid, or
fake citizenship from where it causes you the least issues. I think Canada is popular? Get Canadian citizenship, then move to Switzerland? Maybe we should practice with make-up and disguises too. 😆

Props to Mr. Holland on a fine article. His ideas are well thought out, but for many of us, impracticle. There is no country I would like to move to, despite visiting 17 during my term of military service. I have finished my last move, to the mountains of Pennsylvania. It is a very peacefull, quiet place, and the wild game is outstanding. This month alone. I have taken over 200 pictures of whitetail deer, sitting only a ten minute walk from the back yard.

We have many Amish here, and do business regularly with them, by purchasing their veggies and wood, as well as their homemade jams and jellies (the best I have ever had!). We have a good community, who mostly think alike about the state of the nation. Hopefully, places like this will be left alone if bad things occur, as we don’t pose a threat of aggression, but can darn sure defend ourselves.

Today the first of three hunting blinds will be put in place (where I take pictures) and the beginning of coyote control starts. Helping the local cattle farmer with predator control and if need be, help out in harvesting crops to feed said cattle (Black Angus, one of which sold for 125K a month ago!)

The weather has been awesome, thus my lack of posting, and with a garden in need of weeding, I’ll try to check in later.

I think what Mr. Howard has missed is some of us are preparing to ride out the coming storm. We hope it’s a brief shower, but are preparing for a hurricane. And if America is to be rebuilt, those of us who stay and form strong, tight knit communities will be at least as important as wealthy Americans who return to help re-build.

Also, if America falls that far, what country will truly be better off? The dollar is still the standard for international money. If it goes, what country has an economy that will not be devestated? With the unrestrained credit expansion of most European countries, how would Switzerland dodge the bullet that hits Greece, Germany, the UK, etc…

I’m prepared to ride out the storm, be it what it may become. Set up my first blind this morning, watched five bucks, 4 does and five fawns in the last two hours of this evening, then seen six more does on the short walk back.

I cannot tell anyone how happy my Dad is that I’m here with him now, he say’s he has hope again and we’re getting with it daily.

LOI, there are also some of us (me, for example) who just can’t go anywhere else. They have no CHOICE but to try and ride it out the best they can. If it lasts too long, some of us will just be screwed.

I am trying to prepare for what I see coming on the horizon. It is plain that all this spending and incurring of massive debt is going to come back to roost soon. And when it does We the People are the ones who will get chicken stomped by it.

I loved the article USW, but it don’t help much. I can see what he is talking about is a good thing, but I am unable to take advantage of it.

Funny, I didn’t know Switzerland had that kind of Government. Sounds like a good place to live. And I’m betting we will not EVER change to it, nor will we do even one of those things.

Sad. How a little person with absolutely no influence or power can see plainly where we are headed and the big dogs in Washington can’t. 😀

Was that funny or what? 🙂 Of course thay can see it!! They are COUNTING on it. Indeed, some have planned it all along. There is no other explanation for what the Feds are doing.

Wish I was rich. IF’n I was, I’d start getting myself set up in Switzerland.

I read all the time about “diversifying your portfolio” 😉 and investing in Gold and everything, like BF and some of the others.

But there are some of the folks out there reading that are like me. We is po’ and can’t afford to make too many preparations even though we know the disaster is coming.

Of course, I am doing all I can, but what I can do isn’t much. Obama is just going too fast to finish what the previous administrations started for most of us to stay up with it. And yeah, it’s not JUST him, but the whole Government taking us on this joyride to hell.

I can’t argue about the economic advice (because I just don’t know enough about it), but this scares me …

We must use our excess wealth to fund educational, philosophical and political efforts to restore the original patriot dream of America’s founding fathers.

This kind of language scares me, quite frankly. I doubt my idea of “the original patriot dream” is the same as everyone else’s. Another way to view the above might be: “Use what we have to brainwash …”

And, assuming you could convince me that the “original patriot dream” is what most at SUFA define it to be, what if I don’t agree with it?

“I guess I find it frightening how self-help manuals require a cause …”

Yet it makes complete sense. Self help is not easy. It requires self-responsibility and personal accountability. It is far easier to simply sit back and allow others to take up the hard work for you. Hence why we are in a situation where a majority of Americans are willing to sacrifice liberty for not having to work harder themselves. Self help requires a cause because without a cause, people will fall into the trap of letting others do the helping for them.

I don’t want to take you out of context, USW. When you say “Hence why we are in a situation where a majority of Americans are willing to sacrifice liberty for not having to work harder themselves.” do you mean literally work harder for themselves (employment, striving to do better for themselves, etc.) or is it some metaphorical reference (i.e., libertarian cause)?

Or is it both?

I know many people who work extremely hard (2 or more jobs) to make ends meet who wouldn’t agree with the cause (as stated in the original article).

Joining up with causes (any cause) … isn’t that counter to the idea of liberty?

I appreciate the benefit of the doubt. I will attempt to better explain myself.

I believe that the majority of Americans have allowed the current circumstances to arise in Washington because, regardless of which side they are on, they took the bait and elected people who said that they would do this or that for them. Researching sound people with whom to do business with is time consuming, so people elected leaders who promised to protect them when they entered into a deal with a bad person. Saving money in case they found themselves jobless is difficult so they elected leaders who promised to take care of them if that happens. Americans have fallen into the trap of wanting to be taken care of rather than being responsible for their own care. Politicians have exploited that and corporations have learned how to capitalize on it. We have sacrificed liberty for the promised security that politicians offer, even though the politicians have no intention of delivering on that promise.

That isn’t to say that there aren’t people who work extremely hard. Those that do would survive just fine without government stripping away their freedom. Those that don’t are willing to sacrifice that freedom in order to not have to do so. That mindset is how socialism takes root and grows. The inevitable collapse of the economy and erosion of liberty is what causes all socialism to ultimately fail.

As for your last line, no… not at all. Joining up with causes only runs counter to the idea of liberty when you are forced to join the cause. Anyone who joins of their own free will is exercising liberty, not hurting it.

Americans have fallen into the trap of wanting to be taken care of rather than being responsible for their own care. Politicians have exploited that and corporations have learned how to capitalize on it. We have sacrificed liberty for the promised security that politicians offer, even though the politicians have no intention of delivering on that promise.

There may be something to this (the trap of wanting some form of security), but I suspect it has to do with a feeling of being out of control; so many dependent on so few. While I don’t mind the paradigm of people taking care of themselves, I don’t think it’s possible in our society (again, because the advantages of one so far outweigh those of the other). I see where you’re pointing with this and it’s understandable (and perhaps solid to some degree) but in our modern, global society, I don’t see it as a possibility any longer.

These last few days have been particularly interesting for me here because I’m rereading Anna Karenina. Tolstoy deals with so much of these arguments in this novel; socialism and capitalism and communism, etc. You’d all be surprised where he falls on these issues, by the way … just because he was Russian, he was no great fan of the state (he was an anarchist of the first order), a pacifist who believed in charity above all else.

Anyway, I still see that power of the individual in a free state being usurped by those who have the means to rig the deck, but once again I absolutely agree with your statement: Politicians have exploited that and corporations have learned how to capitalize on it. Especially our current politicians …

Charlie….good morning, sir….I still think you are missing USW’s point (as much as I hate to say it) I will agree totally with his statement “Americans have fallen into the trap of wanting to be taken care of rather than being responsible for their own care. Politicians have exploited that and corporations have learned how to capitalize on it.”

I think this is the crux of the whole thing. I see it everyday and hear statements all the time. even have a family member that I fight with considerably that lives off unemployment, food stamps, free medical, free transportation. Does not look for work….has the attitude that if she can make the equivalent of $15-20 dollars per hour doing nothing, why should she not take advantage of what this country offers and do nothing.

We, of course, do not get along on this…however, I think that our society has adopted this mindset…and I think, therein, lies the crux of the whole problem. I do not blame the politicians or the corporations, but I blame those of us who adopt this mindset. This family member can work two jobs to make it but says I don’t have to work that hard and I should not have to….

A long way around the trail to the current economic situation. I do not share the point of view of Ludwig Von Mises. It was interesting reading but I am not a fatalist on the economic issues. We still have the power to stop this mess. Prepare for things…yes. Do nothing and wait for it….no. I believe that we are out own worse enemy….we…you and I and USW and Black Flag….have allowed this to happen and we are in a position to stop it. America is headed in the wrong economic direction….but we can stop it……but it is going to take resolve and it is going to take courage.

I am not a fan of globalization. It is inevitable, I think, but I also think and I am not afraid of, being the big boy on the block either….but, I fear, the biggest issue is laziness and the “take care of me” mindset. Entitlements are a pariah and a cancer and that is being proven….it is terminal.

Watching the world monetary issues….I do not see the American dollar becoming worthless nor do I see it losing economic power to other currencies far enough to lose the stability on the world market.

But, that is MY theory….time will tell.

By the way, my friend, how are you? Our cold front is over down here…we cooled down to 98…we are back to 103-106 now. I can take my sweater off. Have a great day.

Good to hear from you, brother. I do get USW’s point (and yours) and I agree too many of us are content with entitlements … but … I’m not sure total deregulation is the answer. So long as our current gov’t remains as is, yes, you all all right, we’re doomed, but there has to be something in place (not so much for welfare/unemployment) but for worker protection. I think if we stripped it all tomorrow, big money would still be big money and wouldn’t care an iota for workers when in the midst of competing themselves.

It’s a tough call, brother. Believe me, I live with the frustration daily. What I used to do is what I think would become more the norm than the free market correcting itself (a different form of corruption–a mob mentality, so to speak. People will do what they have to do to make ends meet (and that, unfortunately, includes corrupting whoever they need to). The mob flourished under regulation (prohibition) until it figured out there were $’s in corruping officials as well.

I do struggle with this. Truly, because I’ve seen what regulations can do (my father was driven out of business by a “head shop” law enacted by crusaders back in the 80’s in NY). There I’m a libertarian. Let people do what they want.

I continue to seek a better answer, but I cannot walk away from what I’ve seen over time (those with power taking advantage of circumstances). I still believe both paradigms (state vs. free) are idealist.

“I know many people who work extremely hard (2 or more jobs) to make ends meet who wouldn’t agree with the cause ”

OK, I do also. Lets put yourself in their situation. If you are working two jobs, you are not waiting on the government or anyone else to provide for you. How do you feel. during the six or eight hours a day when you are not working, seeing people who refuse to work, living off your tax dollars?

from D13,
“that lives off unemployment, food stamps, free medical, free transportation. Does not look for work….has the attitude that if she can make the equivalent of $15-20 dollars per hour doing nothing, why should she not take advantage of what this country offers and do nothing.”

I bet your two job friends find common cause with the Tea Parties stance on smaller government, less spending.

“I guess I find it frightening how self-help manuals require a cause …”
People who help themselves already have a mindset that leaves them wondering about those who sit on their @ss,
like in N.O., waiting on someone to come save them.

LOI, I worked 7 days a week a few years ago (for 18 months before one of my 2 jobs was outsourced). I got to pay an extra 26K in taxes so that Wall Street could benefit. It still didn’t bother me that people were getting unemployment or welfare (so long as they “needed it”). Of course I’d rather those who don’t need it move to another country (and I have no problem with deporting people who refuse to work, make no mistake).

I also have a bigger problem with corporate welfare. A much bigger problem.

Having second thoughts. One problem we face is the period before the dollar collapses. The governments seizure of all wealth could be of a magnitude I have not considered. An all powerful government will take from private citizens, and give to it’s supporters, especially government workers. I think Pelosi proposed taking over 401 K’s. Is there anything stopping them from enacting a federal property tax? Government workers, would of course, be exempt.
The democrats seem willing to take any action, even those legal only because they control the only mechanism that is supposed to protect our legal rights
(Réfugiée said, #8’s open mic
July 28, 2010 at 11:15 am

We may be in for a period where the government engages in outright, legal theft, because they can write any tax law they want, and then send their brown shirts to collect. Our best hope there is to live in states that are willing and able to fight the federal government both legally, and physically.

“We cannot continue to rely on our military in order to achieve the national security objectives that we’ve set. We’ve got to have a civilian national security force that’s just as powerful, just as strong, just as well-funded.”

Interesting article USW, but as some have already said, much of this advice isn’t practical for many of us. (My husband is Swiss though, and I did grow up in a Swiss town and took yodelling lessons, was in the annual Heidi play, know all about Wilhelm Tell – maybe it’s time to pull out the old Dirndl and Lederhosen and head to the Alps!)

So, why say it? Though it is exactly what you really need to do, you will not ever consider it.

Instead, he did (and I occasionally) will offer what you should do within the realm of that you may consider. It’s not the right solution to solve the problem for good, but it will get you by enough to perhaps, some other day, consider the right solution.

I know I struggled with accepting what must be done. I went through a short period of feeling disloyal to the American Dream. Once I got past that, my decision on courses of action came down to what is possible vs what is not at this time. I think the advice offered is good and not disloyal at all. Don’t forget that almost half of Americans support the final objective of the Snake Oil. My thinking on this is that many Americans don’t really care about real freedom anymore. They want a comfortable and worry free lifestyle and will vote for whomever promises it. If this is what they want, why should I feel guilty for ‘abandoning’ America? So far as I can tell, America abandoned me.

You have good economic advice. I’ve stated I can handle 3 of the ten points. I also said I can handle the recommendations. Same kind stuff you preach. But you also preach about changing things at a local level. Ron wants everyone to take their money and run. You agree with him. Now which way do you want to have it? There’s only so many bad guys out there and there are 300 million good guys. I’m a good guy. I prefer to change things from within and you are hating on me. What’s up with that?

1. Decrease Your Exposure To U.S. Markets & Political Risk – Continue to diversify your stock and bond portfolio outside the U.S., moving to offshore investments and quality mining share opportunities.
(overall, I agree, BUT…if we remain US citizens, doesn’t the government already
have the ability to track any foreign investments, and therefore to write tax laws aimed directly at those investments?)

DOC is my hero. We’d love to do that and I’m trying to get him published. The guy is a great writer (he wrote a survival novel Kent M., I think, would love). And for all his intollerant sounding rhetoric, he’s one of the most decent and generous guys I know.

As I was reading along, a question popped into my mind which is related to economics (where I am an ignoramus) and history where I am not. So, here I will ask for the opinion/wisdom of one who is pretty sharp on both. I see a relationship with the discussion.

Question sir.

I assume that in the early to mid 1920’s, before the depression, Germany because of its war debts and reparations defaulted on its debts to everyone. We all know the stories of the billion Mark notes (I have one) and the hyper inflation within the country. My question is what happened to Germany vis a vis the rest of the world? That’s it, that’s the question.

I have an issue with or a question with #9. Why wait until your approaching retirement age to start withdrawing funds? Many here like me have 20 to 40 yrs until retirement using the retirement age we have now and will never be able to use are hard earned money because of various reasons from pelosi tax plans to our currency hyperinflating to worthlessness.
For the last 3 yrs i have been taking funds out of my IRA and absorbing the penalties and taxes, is this the wrong thing to do or is it wise that i am at least getting some use out of my money?

“Obama’s election was supposed to transform America, at least in his mind.

This country’s first socialist president strode into office confident that he would remake this country. Fortunately for the country, the timing of his election was twenty, if not fifty, years too late. Socialism has failed in its pure form wherever it has been tried. Now it has failed in its modified form. While much of the world realizes this, President Obama is either ignorant or has more sinister plans for the country.

In the 1920s, Ludwig von Mises demonstrated via economic reasoning why socialism could not work. His argument was that without market prices, there was no way to properly allocate resources. About ten years later, Friedrich Hayek supported Mises’ conclusion from a different angle. He approached it as a “knowledge problem” and argued that no central authority, regardless of how intelligent, could possess enough information to make proper and efficient decisions for tens of millions of people and businesses.

History validated the theory of the two Austrian economists. Russia, China, Eastern Europe, Cuba, and North Korea produced inevitable the misery, poverty, and brutality. The two countries that continue the system are amongst the poorest countries in the world, held together only by totalitarian rule and outside economic support.

With the recognition that socialism did not work, “do-gooders” changed their efforts to a system that would be part capitalism and part socialism. They believed that capitalism could be used for resource allocation while the “caring nature” of socialism could ensure equitable distribution of wealth. President Clinton expressed interest in what was then referred to as a “third-way.” Western Europe had adopted this approach decades earlier.

Interestingly, Mises argued that a “third way” could not work, either. In the 1940s, Mises demonstrated that one intervention begets additional interventions. A so-called mixed system is nothing more than capitalism with interventionism imposed. Mises showed that any such system eventually degenerates into full-fledged socialism. In a collection of essays entitled “Planning for Freedom,” Mises concluded:

There is no other alternative to totalitarian slavery than liberty. There is no other planning for freedom and general welfare than to let the market system work. There is no other means to attain full employment, rising real wage rates and a high standard of living for the common man than private initiative and free enterprise.

The countries of Western Europe have, as Mises predicted, deteriorated into social welfare states likely never imagined or intended at their inceptions. As full-blown socialism approached, these countries became insolvent. Soon all will be forced to either dismantle their welfare states or incur sovereign defaults. The U.S., while never formally adopting either socialism or the mixed system, drifted into the mixed system by gradually adopting many socialist programs. As a result, the U.S. faces the same future of insolvency as its European counterparts.

In terms of history, the mixed system dates back only to Bismarck in the 1880s. It was initiated in a few countries in the first quarter of the twentieth century. Its widespread acceptance occurred after World War II, when several countries chose not to return to the decentralized economies that existed prior to the war. England was the prime example. Industries nationalized for the war effort remained nationalized after the war. England rapidly devolved into a third-rate economy as a result. Prime Minister Thatcher reversed the decline by re-privatizing most of these industries.

It took only about fifty to seventy years for the mixed systems to fail. That is literally a moment in terms of history. Many people are still reluctant to admit that socialism is a failure despite the theoretical warnings and the actual failures themselves. With socialists, it is never the system and always the people that are the cause of failure. “If only we had better leaders.” As Hayek and Mises pointed out, it has nothing to do with leadership. There is a fatal flaw in the concept.

As a result of attempting to extend the socialist myth, governments and their populations are now burdened with debt, much of which will never be paid. We are on the verge of a worldwide depression that will hit as governments run out of resources. It is likely that politicians will continue to play the game of “extend and pretend.” But we have reached Ms. Thatcher’s end-point: “The problem with socialism is that you run out of other people’s money.”

How ironic that President Obama’s first major achievement was ObamaCare. In May, Greece was ordered to privatize its health care system. This month, it was reported that England was going to overhaul their health care system. England was frequently referenced as a model of affordable, efficient health care by ObamaCare advocates. Apparently, the English government and its people view it differently.

These instances are not one-time events. Nor will they be limited to health care. The welfare states of Europe will soon be dismantled in part or whole. So too will the entitlement programs in the U.S. The laws of economics and physics are immutable. They are above legislation. Countries do not have the resources necessary to honor their commitments, period!

Our Founding Fathers, without using the term socialism, designed a Constitution to protect against such incoherent schemes. Over time, the Constitution was vitiated by “living document” interpretations, penumbras, and other nonsense. Now, the U.S. stands on the precipice of failure just as Western Europe. It is insolvent, and there are no other alternatives than to default or dismantle.

The world is at a very dangerous inflection point. We are about to enter a depression. Politicians are not going to back away from socialism willingly. They and large numbers of other beneficiaries will do whatever they can to retain the status quo. Despite the unequivocal failure of the modern welfare state, it is unlikely to disappear quietly. The status quo is always difficult to change. It becomes especially so in desperate economic times and for people who believe they are entitled to be taken care of by others.

The welfare state is headed for the dustbin of history. That is certain because it is no longer sustainable. The critical question is what will replace it. As Mises pointed out, there are only two alternatives: freedom or totalitarianism. There is no middle ground. There is no political compromise that can bridge this gap.

Regardless of which side of the issue you are on, the battle will be bitter and likely last a decade or more. Economically, everyone will be hurt, including many of the “well-off.” Whether our moral and ethical code is strong enough to get through this together is moot. We are not like our ancestors in the sense of their strong commitment to community, responsibility, forbearance, and integrity. We are the pampered generation, entitled to gratification now and willing to cut corners to get it.

In many ways, this problem is more serious than that faced by our Founding Fathers. After all, King George had little control over their lives or fortunes. Yet these principled men risked both rather than accept even a little bit of tyranny. Theirs was a fight of principle; ours is one of survival. The fight is made more important when it is coupled with a depression. We know what monsters rose to power during the last depression and their effect on the world.

We will either get liberty or totalitarianism. There is no middle ground. For me, the choice is clear and was stated by Patrick Henry more than two centuries ago: “Give me liberty or give me death.”

I am willing to sacrifice just as much as our Founding Fathers did so that my grandchildren and their grandchildren can live in the same country I grew up in. I hope enough others feel the same.”

The FATAL flaw in Ron’s arguments is that if all of the freedom-loving people who can afford to do so take their ball and go elsewhere, all that does is make slaves out of all the freedom-loving people who cannot afford to go elsewhere after the well-off freedom-loving people have abandoned this place.

That is the path of cowardice, not the path of courage.

If you love freedom, you love your family, you love your home, and you love other freedom-loving people, you DO NOT ABANDON these things in a time of trial.

As free people, we have a right to own property, and a duty to defend it.

People who say, “This country is done, those of us who can afford it should pack up and go somewhere else!” are essentially nihilists. First of all, it ain’t gonna be any better anywhere else you go; and second, if you like where you are it makes sense to try to make where you are better as opposed to abandoning where you are and then having to make someplace else better when you didn’t wanna be someplace else in the first place.

I think you posted that once recently and I didn’t like it. But it does seem to make sense. Matt posted some sarcasm on “tomorrow’s” page about how he sees the conservative’s view of America. I know that is a fantasy also but it sure beats what we’re lookin at today.

I still struggle daily with what is so hard about living AMERICA. Square me up my well rested mentor before I totally lose my mind.

I do hope you don’t take my sarcasm seriously. There’s a fatal flaw in the written word in that it fails sometimes to capture nuances that would be apparent if spoken.

That said, I do see that people on the other side (your side, but not necessarily you personally) tend to imagine that there would be no unintended consequences if they had their way and that everything would be sunshine and puppy dogs. I just think there are answers in the middle that tend to get overlooked because everyone is so sure of their own correctness. That was my whole point.

I think that may be true for some, but not those who are seriously discussing these options.

All ACTION has consequences. We have seen the results of the current paradigm. I personally think it is an affront to personal liberty and it doesn’t work.

I don’t think tweaking and streamlining will fix something that is fundamentally wrong.

So if life can not be smoothed and all risk eliminated, then why not err on the side of Liberty?

I also think that most of those who fear these concepts can be linked to the larger metropolitan areas. I have said it before and still believe it to be true. Once you move away to the smaller cities, towns and countryside these concepts of freedom are not that foreign to people. I think that is why you see the rural vote go so heavy to the Republicans and conservatives.

Maybe, but it’s not a city/rural, conservative/liberal thing. I just see it, time and again (particularly from politicians, news anchors, talking heads, and such) that people are so damned sure that they are right and there can be no compromise and that the other side can offer no viable solutions. The the other side is, in fact, the enemy. It’s nauseating.

And here on SUFA, while everyone is much, much better, I still see shades of this absolutist mentality. That the liberals are simply wrong and bad for America and everything would be peachy if we were just more conservative on every issue. Well that’s ridiculous. The conservatives are right on some issues and wrong on others and so are the liberals. Yet we vilify each other and draw strawman arguments the make it impossible to see eye to eye. The liberals want to punish the rich! The conservatives are deliberately sabotaging the economy! Obama’s a Nazi! Bush Jr lied about WMDs! (ok, so that one’s true, but still, you see my point).

Enough. We cannot fix what is wrong if we don’t take the other sides seriously.

But we are where we are, to some degree, due to compromise of basic principles.

Yes we live in a Representative Republic. But should we really compromise on basic values? I think not. And that is what the most heated debates are about. Underneath all the inflammatory rhetoric.

Calling Obama a Socialist is the Right as in Correct thing to do. But it is the wrong label in my view. We need to call out politicians for what they are and what there real goals intent to do or will cause.

Now with that said, I whole heartedly support a more “civil” discourse on these issues. Thus the comment that reinstating dueling would help in this regard. 🙂

I do not have as much problem with both sides escalating the heat of the discussion as I do with either side simply ignoring reality when it is lying in front of them. We should stand firmly behind our convictions. But we should never stop testing those convictions for validity.

And as you should know by now, Conservatives are just another type of leftist in my book anyway.

No offense taken on your sarcasm from yesterday. I think everyone at SUFA is after the same thing we just disagree on how to get there. I don’t think we’ll ever live hapilly ever after no matter what side we’re on

Good luck on the voting. I sincerely hope you have someone to pick or write in that meets your values.

The reason I use that concept is to remind people that it is the idea of freedom and individual liberty that was the “American Dream”. It was not about a NATION of power and wealth. It was not about buying a home, two cars and a membership at the country club.

It was about having the right to pursue those things if it makes you happy and if you don’t get them by imposing or using force against others.

The problem I have with the modern conservatives and Republicans for that matter, is that they have forgotten the original dream and focus on the Real Estate. That is how we get sucked into false wars to protect our “national honor” etc, etc.

Living America is easy, but it is a daily struggle. That is because there are many who either forgot about the Dream or don’t believe in it in the first place. There are always men who wish to rule over others. There seem to be many who wish to be ruled.

Our long term hopes rest on our ability to keep the dream alive through education and political action. Oh, and I think we need to increase immigration quotas for those that understand and seek this Dream. We need to dilute the pool of the Statist mindset, heh, heh, heh! 🙂

Also remember that times look the darkest to those who are living in the moment. In 20 to 30 years history may show this was the time when America the place rejected the dogma of Altruism and embraced the legacy of American the Dream that the founders envisioned. And thus the two became the same, once again.

How this time in history is viewed will depend on what WE do now.

I will check back here later and try to answer any specific questions or concerns.

JAC: Living America is easy, but it is a daily struggle. That is because there are many who either forgot about the Dream or don’t believe in it in the first place.

Anita: Or who were not educated about the dream to begin with. So how do we deal with that part? The correct version of American history in schools is a good place to start. Why does “whoever” allow history to be rewritten to fit their agenda? History is history not some rewritten version.

JAC:There are always men who wish to rule over others.

Anita:There is a difference between rule and lead. Why can’t those who wish to lead just LEAD. Which means saying NO many times over. Like a parent/child relationship. Sometimes the answer is just NO But in Washington the answer always seems to be “OK but only if you ‘this’ ”

JAC:Our long term hopes rest on our ability to keep the dream alive through education and political action

Anita: You cant even have a political discussion anymore because no one is allowed to even finish a thought. How are we ever gonna cut to the chase on that?

Jac:Oh, and I think we need to increase immigration quotas for those that understand and seek this Dream

Anita: I’m good with that. The immigrants understand the Dream better than our own citizens (spoiled rotten brats)

JAC:Also remember that times look the darkest to those who are living in the moment

Anita: So tell me how someone like Cyndi who sees the future as doom and gloom and is ready to bail the country is supposed to continue to support the dream that has fallen to pieces in OUR lifetime?

I know you really can’t answer my questions JAC because they all really have a complicated answer. I keep trying to get past the talking stage and get on with some action. No matter what it’s going to be a painful recovery. I just hope that whoever gets into office sees things as I do..that things are way simpler than what has been constructed..that greed and power is not ‘all that’ and that we can get on with LIVING AMERICA. But it cannot happen if the 535 in Washington don’t start saying NO. Maybe that’s the real question. What is so hard about saying NO? And how do we go about making them SAY no.

For ME personally, America is both an idea AND a place. Right now, the place designated as “America” no longer follows the idea of “America” if you get what I am saying. Sure, some of us here try to, but by and large, the controlling mechanism of the place no longer follows the idea, and really hasn’t for at least 150 years.

However, since this is where I live, I would personally rather work to bring back freedom and liberty to where I am, as opposed to ceding my home to the savages and uprooting in hopes that the idea will take root somewhere else.

Everywhere else is just as bad or worse in one way or another, so it is going to take just as much (if not more) effort to go elsewhere and try to attain the “idea” as it would be to try to attain the idea here.

And furthermore…. What is the problem with dismantling as we go. Which is part of saying NO. Like to the BS spending on saving minnows or the million dollar basket weaving projects. It’s not hard to say NO to that kind of stuff? Where has common sense gone? It’s not like we have billions sitting around waiting to get spent.

I don’t think we need to get as bogged down in the HOW it got hijacked as folks like Beck. His work and others is important for educating the old folks but isn’t as relevant to the younger.

If we focus on the philosophical principles and values then our children will be able to put the pieces together. They will look around and realize that the dream they value is not realized. They will know that something needs to be fixed.

I do think we need to teach all the history of America the Dream also. As Matt and Buck have pointed out, all the Founders/Framers were not of like mind. Some actually would be happy with what we have and others wanted even more top down control. It is the DEBATE itself that should be taught and the outcome.

Now how? Turn off the TV and throw away the video games. Use the internet, library and book stores to find materials to read and teach from.

In our family I would tell stories when the kids were young that incorporated the history of our family, state and nation. This is how history was traditionally retained and it needs to be revived. I shared my views on broader issues and why I felt that way. I took the time to explain the meaning and responsibility of freedom and liberty. Not every night but when the opportunity arose that fit. Both my kids would be called Libertarians by most but neither belong to a political party. They are the minority among their friends in their values but first in being able to defend their positions.

I think that concepts like Beck’s University need to spread. One way is to organize small groups in your neighborhood to research and discuss important topics. Share with others and recruit new members as possible.

We can not reach everyone and should not try. First lets reach those who are looking for answers. This still doesn’t stop me from calling B.S. on the unwilling from time to time. You never know who might be listening to your argument and how it might affect them. You will start to find allies you didn’t know existed.

This is what brought me to SUFA. I was trying to reach others. I found a place where people were angry, frustrated and in search of answers. They wanted to take action but without principled purpose. My personal goal is to reach as many as I can to get them to THINK about the underlying philosophical contradictions that led to this mess. And, hopefully, to adopt a solid philosophical system from which we can defend the American Dream in the future. Once we grasp them, solutions become more effective and focused.

Leading is a tricky thing and so is picking the right leaders. Many crave to be led, or ruled as I say. That is why charismatic people like JFK, Reagan, Clinton and Obama come to power. But what we need is substance. More steak and less sizzle if you will.

Great points all MENTOR JAC ! I find myself turning into my dad more & more every day. Back in the day I would fall asleep to the music of NIGHTLINE because he used to watch it every night…then it turned into Rush Limbaugh. Now in my old age my kids tease me about Fox News and SUFA but they understand my interest and have valid questions. I work as hard as I am allowed on my extremely liberal friends (don’t forget I’m in D country) and have brought many of them a long way in their thinking but that’s as far as I’ve gotten. It’s just frustrating and scary these days that things are getting out of hand so quickly. Anyway thanks for your time and your thoughts. Now let’s go tackle the world.

By the way, I thought your son’s little trick of “hi mom” the other day was nice. I hope he didn’t suffer to much for that.

You may live in D country but I live in a county controlled by the Progressive wing of the party. It is unreal at times. That is why I must travel as much as possible. I need to meet sane people face to face to keep me from falling into the pit of despair.

I forgot aboout our primaries being party line votes and there was no line for a write in on governor nor were all candidates who were running listed on the ballot. I did the best I could. We’ll see what happens in November.

“You did the best you could” – which I will point out translates into:

“There really wasn’t anyone I WANTED to vote for, but I did it anyway.”

At least according to my translator.

Voting on a local and State level is LESS pointless than voting on a Federal level, but even at the local and State level, as you can see, THEY WILL NOT LET YOU vote for anyone that you would ACTUALLY SUPPORT.

Hence why several of us argue that all voting does is lend legitimacy to an illegitimate system.